Tae Kim

Advanced Micro Devices stock is rallying as Wall Street is growing more optimistic about its position in the artificial-intelligence semiconductor market.

On Monday, UBS analyst Timothy Arcuri raised his price target for the AMD stock to $210 from $150, and reaffirmed his Buy rating.

"We see an upside bias for FQ2 (June) results driven by both PC and server," he wrote. Arcuri's new price target implies just over 21% upside.

Shares were up 4% at $173.14 in early trading Monday. The stock has gained 43% this year.

In June, the company announced its latest AI chips to compete with Nvidia: the AMD Instinct MI350 series consisting of the MI350X and MI355X.

Arcuri thinks AMD may be able to sell its AI GPUs like the MI355X for $25,000, which is a higher price than expected. He forecasts the company could reach an annualized $10 billion in data center GPU revenue by the end of the year.

The AI data-center market has been moving toward "full stack" rack-scale solutions led by Nvidia. In March, AMD closed its acquisition of ZT Systems, giving the company expertise to design rack-scale AI servers incorporating chips, networking, and software in a larger end-to-end system offering in the future.

Write to Tae Kim at tae.kim@barrons.com

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July 28, 2025 12:40 ET (16:40 GMT)

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